There are recordkeeping and substantiation rules imposed on donors of charitable contributions and disclosure rules imposed on charities that receive certain quid pro quo contributions:

a donor must have a bank record or written communication from a charity for any monetary contribution before the donor can claim a charitable contribution on his/her federal income tax return

a donor is responsible for obtaining a written acknowledgment from a charity for any single contribution of $250 or more before the donor can claim a charitable contribution on his/her federal income tax return

a charitable organization is required to provide a written disclosure to a donor who receives goods or services in exchange for a single payment in excess of $75

[A]n organization conducting any type of gaming should understand how the activity can impact its federal tax-exempt status, as well as its tax and information reporting responsibilities. In the following chapters, this publication will provide an exempt organization – whether it is running games already or deciding whether to start – the information it needs to operate in a manner that will not jeopardize its exempt status or generate unexpected tax bills.

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About Us

Gene Takagi is the managing attorney of the NEO Law Group. Follow Gene on Twitter @GTak.

Erin Bradrick is senior counsel with the NEO Law Group. Follow Erin on Twitter @erinbradrick.

Michele Berger is associate counsel with the NEO Law Group. Follow Michele on Twitter @micheleaberger.